Cheat Sheets

The premise of crowdfund investing is that you put your money into ventures run by people you know and trust — or by people who have a secondary connection to you. What does a secondary connection look[more…]

The pitch video that the entrepreneur or small business owner creates is your window into his crowdfund investing business concept and plan. You can find this video by visiting the particular online funding[more…]

You should be able to locate the meat of the business model on the same funding portal where you find the crowdfund investment's pitch video. The entrepreneur or business owner should provide the equivalent[more…]

You need to apply some common-sense tactics to avoid being swept up in your crowdfund investing enthusiasm. You need to protect yourself from making bad decisions, and you have the means to do so if you[more…]

The minute you start thinking about investing in a company through crowdfund investing, you assume responsibility to help watch for fraud. The power of the crowd — which includes you! — is precisely what[more…]

The U.S. government has placed limits on the amount that you can put into any crowdfund investments. The U.S. government doesn’t often tell people what they can and cannot spend their money on. However[more…]

For many decades, U.S. investors have been divided into two categories: accredited and unaccredited. These designations are the same in crowdfund investing. Federal law indicates that accredited investors[more…]

When you’re ready to pledge your funds to a crowdfund investing campaign, you log onto the online funding portal that supports this particular campaign. Here are the steps you’ll most likely take next:[more…]

You’ll need to do a bit of independent research and reading to find out what your rights are as a crowdfund investor in a specific company’s campaign. For starters, your rights depend on whether you invest[more…]

A common perk for owning stock in a company (via crowdfund investing or otherwise) is having the right to dividends. Dividends do not (usually) diminish the amount of stock that you own. Instead, they’re[more…]

Success in life is based on who you know as much as on what you know. As a crowdfund investor in a small company, providing knowledge and introductions can be very helpful if done in the right way, and[more…]

On occasion, you may be asked to serve on a board of advisors for a new crowdfund investment. This entity is different from a board of directors, which must represent the rights and interests of the stockholders[more…]

Grassroots marketing for your crowdfund investments involves organizing and motivating volunteers to engage in personal or local outreach. It requires that you develop relationships with other stakeholders[more…]

In addition to promoting the specific product or service being created by your crowdfund investment, you may find that you want to promote the company itself to other potential investors. Can you do so[more…]

Encourage other crowdfund investors to follow your lead, but only if you’re setting a good example. It’s important to understand that the entrepreneur or business owner may be new at communicating with[more…]

The best thing you can do is let the entrepreneur or business owner of your crowdfund investment know what your strengths are and where you can provide value. Be a resource for this person to tap into[more…]

Unfortunately, people do break laws. In the case of a startup or growing business like a crowdfund investment, you may find out that the entrepreneur or business owner is doing one of these things:[more…]

When the subject is crowdfund investing, you need to ask yourself why you’re investing in the first place. What are your end goals? What is your time horizon? Do you need to earn a certain percentage on[more…]

As a crowdfund investor, you must hold your company stock for a minimum of one year. (If you hold a company’s debt instead, you may or may not be subject to the same holding period.) The SEC doesn’t want[more…]

The chances of your crowdfund-invested company getting an IPO are extremely small — minuscule, in fact. An IPO occurs when a company goes public — it lists its shares with a stock exchange for the general[more…]

A merger or acquisition is another common way for a crowdfund investor to have an exit. It occurs when a company combines forces with another company (merger) or when a company gets bought out by a larger[more…]

Although crowdfund investing is not an economic cure-all, it can be an important part of the solution. It allows significant numbers of citizens to make modest investments in high-growth and/or Main Street[more…]

Crowdfunding has many applications: from raising funding for disaster relief and philanthropic causes to supporting creative endeavors by musicians, artists, and others; to supporting research and scientific[more…]

Make no mistake: Investing in start-ups and small enterprises is risky business. No matter how well you may know the person seeking funds or how rock solid the business proposal seems, you must proceed[more…]